BSG - Midterm Review Questions With
Correct Answers
A |firm |has |achieved | when |it |successfully |formulates |and |implements |a |value-creating
strategy.
➹➹: | strategic |competitiveness
All |of |the |following |are |assumptions |of |the |industrial |organization |(I/O) |model |EXCEPT
Organizational |decision |makers |are |rational |and |committed |to |acting |in |the |firm's |best |interests.
Resources |to |implement |strategies |are |firm-specific |and |attached |to |firms |over |the |long-term.
The |external |environment |is |assumed |to |impose |pressures |and |constraints |that |determine |the
strategies |that |result |in |above-average |returns.
Firms |in |given |industries, |or |given |industry |segments, |are |assumed |to |control |similar |strategically
relevant |resources.
➹➹: | Resources |to |implement |strategies |are |firm-specific |and |attached |to |firms |over |the |long-term.
1
, All |of |the |following |are |assumptions |of |the |resource-based |model |EXCEPT:
Each |firm |is |a |unique |collection |of |resources |and |capabilities.
The |industry's |structural |characteristics |have |little |impact |on |a |firm's |performance |over |time.
Capabilities |are |highly |mobile |across |firms.
Differences |in |resources |and |capabilities |are |the |basis |of |competitive |advantage.
➹➹: | Capabilities |are |highly |mobile |across |firms
All |of |the |following |are |resources |of |an |organization |EXCEPT:
An |hourly |production |employee's |ability |to |catch |subtle |quality |defects |in |products.
oil |drilling |rights |in |a |promising |region.
weak |competitors |in |the |industry.
a |charity's |endowment |of |$400 |million
2
Correct Answers
A |firm |has |achieved | when |it |successfully |formulates |and |implements |a |value-creating
strategy.
➹➹: | strategic |competitiveness
All |of |the |following |are |assumptions |of |the |industrial |organization |(I/O) |model |EXCEPT
Organizational |decision |makers |are |rational |and |committed |to |acting |in |the |firm's |best |interests.
Resources |to |implement |strategies |are |firm-specific |and |attached |to |firms |over |the |long-term.
The |external |environment |is |assumed |to |impose |pressures |and |constraints |that |determine |the
strategies |that |result |in |above-average |returns.
Firms |in |given |industries, |or |given |industry |segments, |are |assumed |to |control |similar |strategically
relevant |resources.
➹➹: | Resources |to |implement |strategies |are |firm-specific |and |attached |to |firms |over |the |long-term.
1
, All |of |the |following |are |assumptions |of |the |resource-based |model |EXCEPT:
Each |firm |is |a |unique |collection |of |resources |and |capabilities.
The |industry's |structural |characteristics |have |little |impact |on |a |firm's |performance |over |time.
Capabilities |are |highly |mobile |across |firms.
Differences |in |resources |and |capabilities |are |the |basis |of |competitive |advantage.
➹➹: | Capabilities |are |highly |mobile |across |firms
All |of |the |following |are |resources |of |an |organization |EXCEPT:
An |hourly |production |employee's |ability |to |catch |subtle |quality |defects |in |products.
oil |drilling |rights |in |a |promising |region.
weak |competitors |in |the |industry.
a |charity's |endowment |of |$400 |million
2
